The continent’s potential is immense. Despite an enormity of challenges, wealth remains abound if rightly tapped.
Africa has its fair share of challenges. Poor leadership might be at the forefront of it all, but a weak educational system, social inequality, and insecurity still remain mainstays of most African societies. These bottlenecks, however, have not made the continent ‘un-investable’.
Opportunities to create immense wealth by providing commercial and social value are visibly bountiful, and a number of multinationals or foreign governments are taking note. From mineral resources to financial services and infrastructures development, Africa boasts a vast array of investable opportunities.
Some countries within Africa, however, offer a more conducive atmosphere for investment to thrive than others. This is further confirmed by the Quantum Global Research Lab’s ALL Report, which revealed that despite the continent attractive billions of dollars in foreign investments the top five African investment destinations attracted an overall foreign direct investment of $13.6 billion in 2016 alone.
Here are the top five investment destinations on the continent:
Botswana – Botswana, a landlocked Southern African nation, has a modest population of 2.2 million people. However, it showcases economic exploits that far outweighs its slim population size. The former British protectorate has transformed itself from one of the poorest countries on the continent to a middle-income state and is considered one of Africa’s most stable countries, politically and economically. It is the world’s largest producer of diamonds and earns a significant portion of its revenue from its trade. It is also known for Safari-based tourism and entertains a substantial amount of tourists annually.
Morocco – Officially known as the Kingdom of Morocco, the country is located in the Maghreb region of North Africa with a population size about 33.9 million people. It has a sizeable GDP of $274.53 billion with GDP Per Capita hovering around $8,914, an impressive per capita GDP for an African nation. Morocco’s economy is considered very liberal when compared to its northern neighbours and remains open to foreign businesses, particularly the ones interested in tourism, hospitality, agriculture, and energy.
Egypt – Considered the largest and most vibrant economy in Northern Africa, Egypt is home to history and business. It has one of the longest histories of any modern country, emerging as one of the world’s first nation states in the tenth millennium BC. It is also the third most populous country in Africa. Egypt’s economy is one of the largest and most diversified in Africa with a GDP size of $330.765 billion. There have been significant investments made in agriculture, media, petroleum imports, natural gas, and tourism by foreign investors.
South Africa – Recently dethroned by Nigeria as Africa’s largest economy, South Africa still holds the title for the continent’s most advanced and dynamic economy. The country is considered one of the best investment destinations due to its safe tax havens and based on the its economic potential, labour environment, cost-effectiveness, infrastructure, business friendliness, and foreign direct investment Strategy.
Zambia – Also a British colony, Zambia has rapidly expanded its economy and built a resolute and attractive economy for investors since it gained independence in 1964. Due to its exploits economically, it was named one of the world’s fastest economically reformed countries by the World Bank in 2010, owing to how attractive it had become for continental and foreign investors despite managing a relatively small economy with a GDP size of $23.14 billion. The most attractive sectors for investors in Zambia include agriculture, energy, tourism and manufacturing.